Thailand’s economy enjoyed record growth in the fourth quarter of 2012 as industry recovered from the impact of the country’s worst floods in decades.

Gross domestic product (GDP) soared 18.9% in the three months through December from the year-earlier period, according to the government’s National Economic and Social Development Board (NESDB). GDP rose 3.6% compared with the previous quarter.

NESDB secretary general Arkhom Termpittayapaisit told local press: ‘There has been a full recovery after the severe floods.’ He added: ‘An economic recovery in the United States, China and Europe will be good for Thai exports’ and that an increase in Thailand’s minimum wage would also boost domestic demand.

The Thai economy suffered a double-digit contraction in the wake of the floods in 2011, which killed hundreds of people and causing widespread damage to factories.

The NESDB forecasts economic growth of 4.5-5.0% for Thailand this year after achieving economic growth of 6.4% in 2012.

Thailand’s central bank last month held its key interest rate steady at 2.75%, citing a better than expected performance in the economy.